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Galleria/dealpass.com/Advantage DECEPTIVE/DISHONEST BUSINESS PRACTICES Omaha NE DECEPTIVE BUSINESS PRACTICES - DESERVES INVESTIGATION Omaha Nebraska
During the past 30 days, I've assisted my fianc in canceling FOUR so-called consumer savings programs: Galleria/dealpass.com ; Shopping Essentials/ dealpass.com and AtHomeRewards/ dealpass.com ; and MyEasySaver.com.
How these four programs are related exactly is yet to be determined. The more I attempt to find out who the parent company is, the more names and states I collect. (One Galleria customer service claims their parent company is Advantage Marketing. ) However, the promotional literature and program outlines are very similar and we have similar complaints for them all.
After reading hundreds of complaints recorded by consumers against Galleria on ripoff.com, and given our own experience, we can only say that these operations are deceptive and misleading at best and possibly fraudulent and illegal at worst.
Here's where we take issue:
ENROLLMENT TACTICS COMPLAINT #1 First of all, to my fiance's memory, she only consented to participate in only one of these program's free 30 day trial. For the other three, she has no idea how she was signed up. Hundreds of consumers claim on ripoffreport.com that they had no idea how they were enrolled in Galleria, that somehow their credit card or debit card information was captured and they were placed in the program without authorization. This is a serious charge, but it leaves us wondering: Why did my fianc receive several brochures in the mail, all saying she had an ID number and would be charged membership fees if she didn't opt out and cancel within 30 days?
ENROLLMENT TACTICS COMPLAINT #2 The one instance where my fianc did, in fact, enroll in a 30 day trial was when she was ordering merchandise from a legitimate direct mail catalog store. After her order, she was asked whether she'd like a free $50 Walmart Gift Card in exchange for trying out a free 30 day trial of a consumer savings program that would allow her to save 20% when she shopped at Kmart, Kohl's, Staple's, Target, J.C. Penny and many more well know respectable retailers. That sounded appealing, so she said yes.
But, instead of a $50 gift card, she received nothing. A couple weeks later, when we called customer service, she was promised she'd receive it in 7-10 business days. Instead, she received a brochure with a form. The form must be filled out and mailed in, after which (so the form reads) she would receive a survey sometime over the next 2-4 weeks. After she completed the survey and mailed THAT back, she would allegedly receive the gift card. So, the way this operates, the gift card, if it was to come at all, would be arriving well after the 30 day free trial. In other words, after they have your membership money. (Another issue altogether: what kind of personal information is required for them to count the survey as completed? Given the dubious ethics of these programs, I'd be hesitant to give them ANY personal information)
REFUND POLICY COMPLAINT #3 First the good news for us in regards to refunds: we think we've successfully opted out of the 30 day free trials for two of the four programs listed above. More good news: one even credited a few monthly payments after learning that my fianc had no recollection of how she joined, hadn't used the program and, furthermore, has aphasia (disability of using and comprehending words) as a result of a stroke.
Galleria is where we have our biggest complaint. Apparently they have been billing my fianc for well over 18 months. When we called customer service on April 19, 2006 we spoke to a customer service rep and then a supervisor named CINDY. Her ID number is #17356 at 1-800-547-5371. On that call we explained that my fianc had a disability, did not have the reading comprehension to understand an opt out agreement, had not once used their program, and, in retrospect, does not remember ever consenting to be Galleria's program.
Although Customer Service Supervisor Cindy said she had the authority to grant refunds over and beyond the policy of one month, and although we requested a FULL refund, she REFUSED, saying she would only grant two months refund. She also refused to have us speak to HER supervisor. When we appealed to her better nature and the better nature of her employer, she simply repeated that the company policy is not to give such refunds. I even suggested a compromise: that Galleria refund half of the money they had collected. Again, she refused. I ended the call, suggesting that, while my fianc is disabled, I was not. And I had the ability to write and file letters and complaints. So now I will to every agency and public forum possible.
LACK OF MEMBERSHIP FEE DISCLOSURE COMPLAINT #4 In having reviewed the four sided 8 x 11 inch brochure of three variations of these programs, one will find them PLASTERED with small print and policies difficult to decipher and while all three of them clearly state there's a 30 day free trial, NO WHERE does it mentioned what the membership fee actually is. In other words, what the bill will be AFTER the 30 day trial. Isn't there some consumer protection law that prohibits this kind of secrecy?
FOR INVESTIGATION The second thing I immediately noticed after the omission of the membership fee was that the retailer's listed on the programs affiliated with dealpass.com were NOT affiliated with, nor sponsors of, the dealpass program. That means these programs like dealpass/Galleria are a THIRD PARTY and this third party is offering a 20% discount on these retailers merchandise. How, exactly do they do that? In Galleria's case, they were charging us $16.95 per month. Yet, the claim is made that members can receive piles of gift cards worth $25 a piece for only a $20 charge each. Let's say we purchase only 5 gift cards in the current month. That means Galleria just gave away $25 ($125 worth of cards -- 5 cards x $25 each for only $120 -- 5 cards x $20 each). Yet they only collected $16.95 from us. Imagine the deficit they'd run if each customer did thisor if each customer ordered 10 gift cardsor even 20 a month!
Well, you know that can't be possible. They aren't giving away money. So how can they stay in business? The most plausible explanation I've heard to date is simply:
THE MEMBERSHIPS ARE NOT BEING USED AS SUGGESTED: Several reports on ripoff.com suggest that many members are not even aware that they are enrolled and being billed. Further, it's claimed that these programs count on the consumers who are unwittingly enrolled in these programs to not check their bank statements at least for a month or two and/or not call in to cancel until after these programs have collected a few months fees, or in some cases an annual fee. One report in particular who claims to be a former employee gives a breakdown of their finances. According to him, Galleria spends the majority of it's money in MARKETING, not consumer services.
A QUESTION: If this alleged $400+ million dollar company is spending more on marketing than actual payout in the service they say they deliver, then I believe the FTC should be asked to investigate them to not only determine whether they are deceptively or fraudulently enrolling individuals, but also to investigate whether they are operating a possible pyramid or ponzi scheme. If they are guilty of the latter, that would mean they are using new membership fees towards refunds or consumer services they are allegedly providing when they sell you a $25 gift card for $20. I put services in quotes because, if you think about it, they not only do not provide a product, but their service is nothing more than a money game.
Truly, it would make our day, should the regulators just shut this whole group down.
Michael
USA, California
U.S.A.